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Distribution |
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Many distribution environments utilize a forecast to manage their supply chain. The environments are often characterized by the common dilemma of wanting to hold more inventory to protect sales while at the same time wanting to hold less inventory to reduce expenses. This ongoing dilemma results in a less than optimal compromise between the two states and often results in:
· Too much inventory in some places, not enough in others (stock outs) · Low inventory turns · Focus on selling slow movers at the expense of the more profitable fast movers · The need to reduce prices (incentives) to push surplus stock · Increased product expiration · The endless search for a better forecasting system
Our supply chain solution, based on a pull system replenishment model, ensures that the right products in the right amounts are at the right places at the right time. The benefits of our model include:
· Significantly higher inventory turns · Significantly lower inventory levels throughout the supply chain · Ability to expand the breadth of products available throughout the supply chain · Very few lost sales due to stock outs · Increased availability of more profitable products in front of the customer and the slow movers off the shelves · A much simpler, more accurate forecast system
The model allows a company to not only keep the costs of carrying inventory low, but maximizes the availability of the highest demand and most valuable products. This also provides a significant competitive edge in the marketplace. |
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P3 CONSULTING GROUP, INC. |
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Synchronizing people and processes to maximize profits |
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© 2007 P3 Consulting Group, Inc. All rights reserved. |
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P3 CONSULTING GROUP, INC. 872 South Milwaukee Ave. #298 Libertyville, IL 60048 847-420-6744 |
